I was a former senior manager at KPMG and since 1994 the owner of the Marks Group PC, a 10 person customer relationship management consulting firm based outside Philadelphia. I've written six small-business management books, most recently "The Manufacturer's Book of List" and “In God We Trust, Everyone Else Pays Cash: Simple Lessons From Smart Business People.” Besides Forbes, I daily for The Washington Post and weekly for Inc. Magazine, Entrepreneur Magazine and the Huffington Post monthly for Philadelphia Magazine. I am an unpaid contributor to Forbes. I make no compensation from the number of people who read what I write here. Follow me on Google Plus, Twitter, Facebook, and Linked In.

Staples' Successful, Uncomplicated Strategy

A typical Staples office supply store, in Ontario, California. Photographed on March 22, 2005 and uploaded the same day by user Coolcaesar. (Photo credit: Wikipedia)

Like most guys, I’m not a shopper. I don’t often buy clothes for myself and when I need to I usually just visit a men’s shop where I buy the same things each time. I go to the mall maybe twice a year and that’s only because of the food court (usually, I’m sitting on a mall bench reading while my wife goes from store to store). Occasionally I’ll conduct a surgical strike at a Target or Walmart when I’m in need of socks or sweatpants.

However, and as a small business owner, I do shop at Staples. Really shop. Both in their store and online. And this is an important thing to consider as the office supply company releases its quarterly earnings Wednesday.

Staples, and other retailers like Home Depot, Target, Dollar Tree and Walmart will all be releasing their earnings this week. The Census Bureau will be releasing monthly retail sales Tuesday. Economists and the media will be watching closely to see if consumers are spending and if the economy is growing.

And these analysts continue to be mixed about Staples. A Forbes contributor reports that “the majority of analysts (66.7%) rate Staples as a buy. This compares favorably to the analyst ratings of its nearest eight competitors, which average 34.5% buys.” But analyst sentiment “has waned” during the past few months. In fact, as recently as last week it was reported that a significant analyst downgraded their recommendation of Staples stock from a “hold” to a “sell.” Not all, mind you. The author of this report noted that in the past few months “Analysts at Zacks reiterated a “neutral” rating on shares of Staples. Analysts at Caris & Company upgraded shares of Staples from an “average” rating to an “above average” rating and analysts at Caris & Company upgraded shares of Staples from an “average” rating to an “above average” rating.

These are stock market guys making bets. I’m not a stock market guy and have no idea whether Staples stock will go up or down after their earning release. I do know that the company will have more than $25 billion in sales this year and this number has been growing in the low single digits over the past few years, even in a very slow and difficult business environment. The company’s net income is expected to increase 9% this year over last. Why? One significant reason is the company’s online sales. “The office supplier’s online sales now account for about 40% of total revenues, which puts Staples right behind the global leader in e-commerce, Amazon.” Says one blogger. “Staples receives about 60% of its total revenues on a business-to-business basis. This model has proven successful and has helped Staples grow its top line.”

That guy, the business-business customer, is me.

I am a small business owner and a technology consultant. And I think that Staples is one of the few brick and mortar retailers that have figured out how to successfully marry their store and their website. And they provide a good example of how retailers, both big and small, can use also technology to succeed. It’s not just about cost (although being price competitive in the office supply industry is a must). It’s not a complicated strategy. It’s all about using technology to enable speed, convenience and choice.

Speed, to me is the most important thing. Most business people don’t plan out their office supply purchases. We order copy paper when the last ream is about to run out. We order pencils when we can’t find any more around the office. We (grudgingly) purchase replacement printer cartridges when our printers tell us to do so (even though many of us don’t believe that the printers are telling us the truth). When this happens I go to Staples’ website and re-order. The website is like all websites should be. I log in and immediately see my last orders so I can quickly click to buy again. I can easily do keyword searches for other things. I’m encouraged to buy more so I can get free shipping. I get my purchases credited to an awards program and frequently get coupons that I exchange before completing the transaction. This is standard, necessary stuff that enables a speedy transaction.

Is your website like this? In 2012, there’s no excuse otherwise. No, you don’t have to hire expensive programmers to develop a custom application. Because, let’s face it, your business (like mine) is not that special. There are a lot of us doing the same thing. And so there are just as many ecommerce applications available to enable this kind of online experience. Google, Amazon and Yahoo all have their own merchant centers where you can sell your items and build the storefront into your website. And, no offense to Staples, most of these inexpensive sites offer most of the same capability that you’ll find on Staples’ website. There is one big secret, though. If you really want to use technology like Staples then here’s the key: make sure your website and accounting system are using the same inventory database. Ever wonder why, before you barely get started, Staples.com asks you for your zip code? That’s because the site is checking inventory levels at local stores to coordinate delivery. Find an e-commerce product that integrates with your accounting system. For example, if you’re a QuickBooks user than start at Intuit’s App Marketplace.

Next is convenience. I tend to go to Staples’ website when I order copy paper. I tell people that I do this because I hate lugging those heavy boxes to my car or I don’t have the time to stop in their store. But the real reason is that every time I go to a Staples store I wind up spending more money (“wow, what a cool fountain pen!”). A good retailer uses its website as a convenient tool for its customers. The most critical aspect of Staples website, however, is its delivery. I realize that I’m a typical small business owner which means that I can barely plan what I’ll be doing that afternoon. But if I can manage to wait just one day, I’ll have my order delivered to my door. Can you provide the same convenience to your customers? Can you ensure that if there’s something they really want from your store they can also get it from your website and have it in their hands almost as fast? Figuring out how to deliver quickly is the key to successfully integrating your website with your store.

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